How to buy property in Portugal

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How to buy property in Portugal as a foreigner  – the key steps

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If you are looking to relocate to Portugal or are one of the many expats already living there and don't know what buying property in Portugal entails, and follow our property buying guide to help you navigate the Portuguese real estate market:

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Research and Identify Location:

Before you buy property, you must begin by researching different regions in Portugal to determine which area suits your preferences and needs. Real estate prices understandably vary depending on location, if you are looking to purchase in any of the wealthy expat enclaves or regions such as:

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- Quinta do Lago/Vale do Lobo

- Comporta

- Sintra

- Foz do Douro

- Vila Nova de Gaia

- Vilamoura

- Cascais

- Lisbon

- Porto

- Estoril

-Benagil/ Carvoeiro

- Lagos

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In addition, the cost of living is very good however, it varies depending on location. Most property buyers should also consider factors such as climate, lifestyle, amenities, healthcare, education, transport links, infrastructure, and proximity to airports or major cities.

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Talk to us about engaging a real estate agent:

Our experts can guide you to a reputable real estate experts who specializes in the region you are interested in. They will have local knowledge, access to listings, and can guide you through the process. We ensure the agent is registered with the relevant Portuguese authorities, such as the Portuguese Association of Real Estate Professionals (APEMIP).

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Define Your Budget:

Establish your budget for purchasing a real estate property, considering your financial capabilities and requirements. Keep in mind that in addition to the property price, you should consider other costs like taxes, legal fees, and ongoing maintenance expenses.

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Property Search:

‍Work closely with your real estate expert to identify properties that meet your criteria such as property type (apartment, villa, etc.), size, features, and amenities.

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Property Viewings:

Before buying your dream property, view the shortlisted properties in person with one of our real estate experts. This will allow you to assess the condition, location, and surroundings of each property. Take your time during viewings and ask questions to gain a thorough understanding.

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Legal Assistance:

Engage with one of our qualified lawyers who specialises in Portuguese property law. They will ensure that all legal aspects of the purchase are handled correctly, including verifying ownership, conducting due diligence, and preparing the necessary documents.

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Financing:

If you require financing, explore mortgage options available from Portuguese banks or international lenders we work with. We always advise that we get multiple financial institutions to secure the best terms and interest rates for you.

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Offer and Negotiation:

Once you have identified your target property, our real estate expert can assist you in making an offer to the seller. Negotiations may take place to settle on the final price and conditions of the purchase.

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Promissory Contract:

Once agreement is reached, a promissory contract (Contrato Promessa de Compra e Venda) is usually drawn up. This contract outlines the terms of the property purchase, including the purchase price, payment schedule, completion date, and any specific conditions.

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Due Diligence:

Before signing the final deed, our lawyers will conduct a thorough due diligence process on your behalf, including verifying property documents, confirming any outstanding debts or encumbrances, and ensuring compliance with local regulations.

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Signing the Deed:

On the agreed completion date, both parties (buyer and seller) or their legal representatives will meet to sign the deed of sale (Escritura). This document transfers ownership of the property to you. You'll need to present a valid identification document, such as a passport.

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Tax and Registration:

‍After signing the deed, you will need to pay the applicable property transfer tax (IMT) and register the property with the Portuguese Land Registry which we can help you with. Our lawyers can assist you with these processes to ensure compliance.

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Ongoing Costs:

Remember that being a property owner you must consider ongoing costs associated with owning a property in Portugal, such as property taxes, utility bills, maintenance fees, and insurance which we can guide you throughout the process.

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Please note that this is a general overview of the property market and how to buy property in Portugal. The specific process may vary according to individual circumstances, property types, and local regulations which again, we can take you through.

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Working closely with our team and real estate partners and one of our lawyers will provide you with the necessary guidance throughout the entire process.

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